MADRAS CEMENTS LTD. Vs. CCE

JUDGEMENT

(1.) IN these 4 stay applications, the issue pertains to eligibility and availability of Modvat credit on certain items. In the stay application 158/2003, the amount required to be deposited is Rs. 10,178. It pertains to the Modvat credit in respect of Acquachem falling under 3824.90 used in 3 water treatment plants. Ld. Counsel relies on the judgment rendered to this Bench in the case of CCE, Madras v. Manali Petrochemicals Ltd., 1997 (68) ECR 662 (Tri.) and that of Orient Paper Mills v. CCE, Indore, 1997 (93) ELT 501 (Tri.). In both the appeals, the chemicals used for treatment of water for removal of heat in the process of manufacture of final product, are eligible inputs. Prima facie the appeals have shown that they are eligible for Modvat credit and hence, this stay application has been allowed, granting waiver of pre -deposit and stay its recovery.

(2.) WITH regard to Stay Application Nos. 159 and 160, the amount required to be pre -deposited is Rs. 11,100 and 18,800. The appellants claimed Modvat credit in respect of Point Attack Picks falling under 82.07 and Chain Link falling under 8431. Ld. Consultant submits that both the items are capital goods used in the machinery and required to be granted the benefit of Modvat credit.

(3.) LD . SDR submits that both the items are not eligible for the benefit of Modvat credit as they are excluded from the definition of capital goods during the material period. She relies on the judgment rendered in the case of CCE, Jaipur v. Guljag Industries Ltd., 2004 (91) ECC 128 (T) : 2003 (58) RLT 611 (Cestat -Del.).